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HomeMy WebLinkAboutMinutes_Wolf Lakes TIRZ_12.16.2019 Minutes of the WOLF LAKES TAX INCREMENT REINVESTMENT ZONE (TIRZ) BOARD City of Georgetown, Texas December 16, 2019 The WOLF LAKES TAX INCREMENT REINVESTMENT ZONE (TIRZ) Board of Directors met December 16, 2019 at 3:30 PM in the CITY HALL COMMUNITY ROOM, LOCATED AT 808 MARTIN LUTHER KING JR STREET, GEORGETOWN, TX. Board Members Present City Staff Present Dale Ross, Chair Laurie Brewer, Assistant City Manager Valerie Nicholson Wayne Reed, Assistant City Manager Steve Bohnenkamp Paul Diaz, Budget Manager David Morgan Michaela Dollar, Economic Dev Director Sofia Nelson Valerie Covey Board Members Absent Others Present Steve Fought Mayor Ross called the meeting to order at 3:30 p.m. Legislative Regular Agenda A Overview of the Wolf Lakes TIRZ Preliminary Project Plan – Laurie Brewer, Assistant City Manager Laurie noted that the Wolf Lakes Tax Increment Reinvestment Zone (TIRZ) was created around this time last year. There has not been any financial activity, but it is a state requirement to hold an annual meeting. She gave background on the TIRZ. The Wolf Lakes TIRZ Board of Directors includes the Mayor, Councilmember District 2, City Manager, City Planning Director, Member of City’s 4A Board and 2 representatives to be appointed by WILCO. Commissioner Val Covey will be one of the members, and they will appoint another at a later date. The purpose of the Zone is to provide economic and qualitative benefits by facilitating a program of public improvements that provide for the development of a mixed-use development with business/corporate offices, retail, entertainment, and enhanced quality of life features for residents. The location is at the NW corner of IH35 and its intersection with University Avenue (SH29), bounded by Wolf Ranch Parkway west and the River Hills subdivision to the north. Laurie explained how Tax Increment Financing (TIF) works, noting that it is a tool used by local governments to finance public improvements within an area that has unique challenges or opportunities. The creation of a TIRZ sets a base from which any additional taxes on increases in appraised value are set aside as a source to reimburse the developer for public improvement. Council set this TIF up as a reimbursement only, so the developer has to create that value, put in improvements and then get reimbursed at that time. Council felt that Wolf Lakes had strong corporate use opportunities and that retail will support office and residential and that mixed use provides additional sustainability. The Planned Unit Development (PUD) process provided a higher level of development standards that the developer was actually driving. They wanted to create an environment where they felt the assessed values would be higher. The developer estimates $1.7B in overall value after the buildout, vs. $460M from a previous plan for development. The City staff tends to be more conservative and projects from $900M to $1.4B. We agree that it will be an enhanced development, but not quite at the same place as the developer is. The TIF provides framework for performance-based reimbursement, so if the increment is not there, the developer doesn’t get reimbursed. Commissioner Covey asked if any of this has changed from the original discussions on what would go there, and what the final decisions were. Laurie said that it hasn’t at this point. David said that so far, what has been active on the site (from the comments reviewed) is that we will likely start with some multi-family off of Wolf Ranch Parkway with the higher development standards and also working on very active interest in relation to office and retail. He said that there was some really hot interest for a while, and that has now cooled off some. One thing that was discussed is that this is a decade-long project and a great benefit is that the developer agreed to be structured into a PUD that requires more density and allows for a greater opportunity for stronger employment. Wolf Lakes TIRZ Summary: Paul Diaz, Budget Manager presented the following slide information on the financials: Laurie noted that the estimates include a mix of what the developer proposed and some of our experience factor in what we have seen in the past TIFs. To date, we haven’t seen 100% of what the developer says, so a projected number somewhere in the middle will give the developer a realistic view of what they will get reimbursed. There is also a cap due to the interest costs that accrue that could cause the TIF to go on indefinitely. David explained that the onsite infrastructure reimbursable estimate ($45.6M) includes County (for transportation, roads and stormwater) and City combined. We are just trying to be realistic on our expectations of the revenue. David addressed Commissioner Covey’s question about the structure and members of the TIRZ. David explained that from a Best Practices standpoint, it is cleaner if the developer represented is not a member of the board, as they would have to recuse themselves during voting. Discussion on questions and clarification of various items. Adjournment Motion to adjourn at 3:26 p.m. by Dale Ross; second by David Morgan. Approved 6-0 __________________________________ ____________ Mayor Dale Ross Date Board Chair __________________________________ ____________ Danella Elliott (for Amy Mertink) Date Board Liaison